The shares of Tata Investment Corporation gained more than 20% in the trading session of Friday, affected to ₹3,909.90 per piece ahead of Tata Technologies’ upcoming initial public offering (IPO).
Tata Investment shares opened ₹ 3,270 per share in early morning trading on Friday, against a previous close at ₹ 3.257. Tata Technologies, which is all set to go public on November 22, is a subsidiary of Tata Motors in which Tata Investment is a promoter group unit.
Tata Investment is a non-banking financial company (NBFC) that is involved in long-term investments such as equity and related securities. The NBFC also owns stake in several other Tata Group companies such as Tata Chemicals, Tata Consumer Products Ltd, Trent, Tata Elxsi, Tata Steel and TCS.
At 12:40 pm on Friday, over 13 lakh Tata Investment shares changed hands on bourses compared to the one-week average of 52,000.
Tata Investment’s shares have almost gained more than 80% so far this year, while in the last five years it has grown more than 350%. It has also recorded positive returns in seven out of eight years.
According to several reports, the rise in the Tata Group’s NBFC firm came after it appointed a new chief executive personnel and general manager.
Tata Investment Corporation was promoted by Tata Sons Pvt Ltd in 1937, under the name The Investment Corporation of India Limited.
About Tata Tech IPO
Tata Technologies IPO price band has been fixed at ₹475 to ₹500 per equity share. However, since the announcement of its price band, the gray market has turned bullish on the public issue.
According to market observers, shares of Tata Technologies Ltd are available at a premium of ₹367 in gray market today, which is ₹117 higher from yesterday morning GMP from the book building issue. Market watchers said that Tata group is coming up with an IPO after a gap of almost two decades.
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Updated: 17 Nov 2023, 16:48 IST